Fix and Flip

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It is never fun to lose money on your real estate investments. It is not fun to invest a lot of your sweat, time and money into finding and renovating a property so that you can flip for a profit. As an investor, it is important to realize that successful flipping is more than finding the right property and making the required renovations. You should also be able to relist and sell the property later on.

House Flipping is an Art

House flipping is not for people with weak temperament. It is important to be meticulous, patient, and even emotionless at times. The process of finding a suitable property, renovating it, and flipping it for profit can take a lot out of you. It is not like the 30-minute episode on TV.

It is quite common for people to make offers on multiple properties before one is accepted. If someone tells you that he/she has had plenty of offers rejected, you immediately know that they are doing it right. He/she is being patient and thorough and not letting emotions get in the way and not settling for overpriced properties. While it might appear rudimentary, it is important to first review the three stages of the process of flipping houses for maximum success:

1. Finding the Right Property

Finding the right investment property is the most important stage of house flipping since it is where you will make your money. If you overpay for a property, you will find it very hard to flip it for a profit later on. You can find excellent free resources from experienced real estate investors and house flippers online to help you with this important step.

2. Renovating the Property

Property renovation is the messiest stage of the house flipping process. It is where you invest your time and money so that you start seeing the aesthetic improvement. Finding the right property might be an important step, but most mistakes happen during the renovation phase. A first-time flipper should work with an experienced person to ensure that improvements and repairs go as smoothly as possible.

3. Selling the Property

Selling the renovated property is the third and final stage. It is at this juncture that your determination and hard work pays off. If you have found the right property and done the necessary renovations, then selling it will be much easier. However, selling a property is not as easy as it sounds.

4. Setting a Fair Price

Everyone would like to make money especially considering the meticulous searching and manual labor that goes into finding and renovating a property. However, if you decide to overprice the property, it will be hard for you to sell it. The end buyer does not care the amount of money and effort you put into the entire process. What he/she cares about is what he/she is getting and will not overpay just because you worked hard on renovating it.

5. Educating Potential Buyers

Educating potential customers about what you did to the property is still an important step. It is the perfect opportunity to market your home and let potential customers know what an amazing deal they are getting. It is impossible to list all the improvements you made, but choose 2 or 3 of the biggest ones then use those as selling points. For instance, you can tell potential buyers about the renovated master bathroom, refinished hardwood floors, and new HVAC unit. Avoid focusing on how bad the property was previously, but rather focus on how beautiful it currently is.

6. Using Professional Pictures

Professional images can make a significant difference when it comes to real estate listings. Do not take amateur photos, and professional photography is ideal. A professional real estate photographer uses the right equipment, understands flattering angles, and is worth each dollar he/she charges.

7. Social Media Marketing

You will naturally want to list your property on Zillow and other popular listing websites, but your marketing efforts should not end there. Social media can be a powerful ally when selling a property. A professional business page is not even necessary. Post about the home on your page and request your close relatives and friends in the area to do the same.

8. Use the Services of a Real Estate Agent

First-time house flippers quickly realize that the process of buying, renovating, and flipping a property for profit is never a one-man job. Success requires an entire team of people. You must never attempt a For-Sale-By-Owner (FSBO) transaction since there is simply too much at stake. An experienced agent will help you protect your investment and maximize your profits.

The Bottom Line

Investing in property is an excellent way to secure your financial future especially if you buy properties and flip them for a profit. However, it is important to have the right advice if you would like to be successful with house flipping and real estate investment in general. The tips provided here will take you from beginner to expert house flipper within the shortest time possible.

Real estate investment comes with numerous advantages. In fact, it is one of the most popular investment opportunities for many Americans. The consistent property appreciation and the rental income it promises are enticing attractions of investing in real estate. Many people don’t realize that they can invest their retirement funds in real estate. In fact, you can invest your 401K retirement plan in real estate and gain numerous advantages including tax benefits. Here are some of the outstanding advantages of real estate investments for a 401K.

Usually, when an individual invests in real estate, he or she has to pay tax on the rental income. Whereas, if he or she sells the property for a profit, they have to pay taxes on the profits even if they plan to reinvest the money in real estate. An IRA can delay the taxes on your real estate income as long as the money is in your IRA account. This delay will help the individual to earn a higher after tax return on the property portfolio over time.

In fact, 401K plans are long-term saving accounts that offer certain tax advantages when you comply with the regulations laid down by the IRS or Internal Revenue Service. Although some financial firms will not permit investing your 401K in real estate, the majority of them do allow. That is why it is important that you consult the retirement plan administrator before deciding to invest in real estate. That way you can determine whether your IRA is eligible to invest in real estate. The administrator may have advice for you on how you should move the retirement funds to access the real estate market.

An individual can borrow half of the value of the sum in his/her 401K plan. However, if you are not in a position to directly invest your 401K in real estate, you have the tactic of rolling over your 401K into an IRA tax-free account. These proceedings can be used to invest in real estate. When you purchase real estate through an IRA account, you are not in a position to actively manage the property. That is where you need the services of a reliable property management company in the area. In fact, you have to get an outside agency to manage, maintain, and collect the rent of the building promptly. That way you can enjoy the tax advantages on your IRA account.

When you purchase real estate from your 401K account, all funds that are used to buy the property should come from the IRA account. If you can follow these restrictions, your IRA account won’t have any tax issues in the long run. There are countless items that you need to consider when investing in real estate using your 401K plan.

All expenses that you incur in the process of buying real estate using the 401K fund should be paid using the funds in your retirement account. Partnering with any other party when buying property with your 401K plan is not allowed. It could trigger IRS prohibitions if apprehended. You have to keep exact records of all income and expenses generated by the 401K account owned real estate investment. All legal matters of the property should be clear, especially if you purchase a property in another state. Beware of any fraud when buying the property from a promoter. These are some of the most important things to consider when investing in properties using your 401K fund.

You have to pick the right property management firm to manage the assets that you purchase in your 401K plan. With hundreds of property managers in the area, finding a reliable manager is not an easy task.

Thank you for visiting the newly-designed Osborn and Little website. As the leaders of the real estate investment industry, we know what it takes to invest wisely. Our areas of speciality are vast and expand into every profitable niche. We have significant experience over the course of the last thirty years. Our executive leadership is strong and ready to lift you into a better future. Your family deserves the best and we are here to provide it for you through outstanding strategic thinking and planning.

We understand the challenges that an investor faces. From initially discovering good deals, to doing the due diligence and going under contract, we are here for you. We create support for you at every level. You won’t find a more dedicated team to fulfill your needs around every corner. Intimidated by the potential challenges of a fix and flip property? There is not need to panic. We are here for you. Are you interested in learning the latest techniques for dealing with hard money lenders? You have no need to worry. We’ve got your back.

Our team is comprised of a staff of thirty highly-trained professionals that have been awarded for their work through multiple publications. Why settle for a lessor team when you can have the best of the best? You are not alone in your quest to build a real estate fortune that give tremendous stability for your family and generations to come.